Are You Abdicating Financial Control?
Spring is finally here in the mountains. Plants are emerging from the ground, the grass is turning green, and there are enough warm hours in the day to open the windows. I love having fresh air in the house and office, a truly welcome experience during the confinement of COVID-19.
It reminds me that, just like issues in life and business, seasons will always come and go. The economic challenges that have been presented to us with COVID 19 are simply the issue of the day. How nimble have you been? Are you able to make changes in a timely manner? Were you able to move quickly to take advantage of small business funding?
In order to best serve our clients, I am always watching and listening for where the challenges show up.
For so many businesses, their financial management systems were either not in place or not fully understood. What is the difference between payroll and a draw? How do I know how much money I am making? What documentation provides required information for the application process and, coming up shortly, the request for loan forgiveness?
What I realized is there is a level of abdication when it comes to financial management. Many who are brilliant business leaders, experts in their field, throw up their hands when it comes to financial management. But as the leader of your financial life (and the financial life of your company), it is important to partner with our financial team, not abdicate all responsibility.
What does it mean to partner? As a leader you don’t have to do everything, but you want to understand everything so you can be sure your goals are being met. Understanding the steps that drive the system and the expected result from each step is essential.
This understanding will allow you to know who you need to empower to carry out the step… and whether or not it’s being carried out correctly.
The first step I recommend to every business owner: Learn how to read your profit and loss statement and your balance sheet. Your very first overview will tell you whether or not these reports hold integrity. Are there negative numbers on these reports which are not reporting depreciation? If so, you have an integrity issue in your numbers.
We are here to help! Take advantage of our CFO Review process. We will take a deep dive into your numbers, review your reports and systems for accuracy, and teach you what to look for while we look at your reports together.
Today more than ever before, we are all in this together! Reach out now to firstname.lastname@example.org and Grace will get you scheduled.